Which factor contributed to the demise of stagﬂation during the 1982-1989 period?
A) a lessening of foreign competition
B) the decline of the monopoly power of OPEC
C) an increase in the per-unit cost of production
D) an increase in regulation of the airline and trucking industries

Question

Quizplus · Accepted Answer

The decline of the monopoly power of OPEC contributed to the demise of stagflation during the 1982-1989 period. OPEC had previously held a significant amount of power in setting oil prices, which had a ripple effect on the prices of goods and services across industries. However, by the 1980s, OPEC's power began to decline as other countries increased their production and the demand for oil decreased. This resulted in a decrease in the overall price level and inflation, leading to the end of stagflation. None of the other choices are directly related to the reduction of stagflation during this period.

Which Factor Contributed to the Demise of Stagﬂation During the 1982-1989